Kingfisher promoters convert 5 % of loans to equity

In a bid to resovle the crisis facing Kingfisher Airlines early next week, Vijaya Mallya yesterday said he had organised funds towards payment of salaries that were "seriously overdue".

Giving no details about the funding, Mallya said Kingfisher promoters, the UB Group and its associates had converted their loans for an additional 5 per cent equity in the airlines last week.

"This is the maximum permitted under law in any one financial year but clearly demonstrates the faith that I have in all of you and in our company," he said.

He admitted many employees had left and a large number were about to quit the carrier.

Referring to government policies that could ''make or break any industry,'' Mallya said, ''so far it has been downhill for Civil Aviation except for one airline that defies the odds and claims to be profitable however unlikely that may be.''

He added that the Kingfisher family would grow ''with those who have the pride in their hearts of having stood by our company through ups and downs, sometimes with great personal sacrifice. That is the true test of loyalty dedication and commitment.''